Deutsche Bank Posts Sharp Fall in Profit Amid Vast Overhaul

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Deutsche Bank is under fire from investors following a 79 percent drop in its quarterly net profit since past year.

For Malta, the relocation of Binance from Taiwan to the European country is a bigger move than Deutsche Bank permanently relocating its headquarters and operations from Germany to Malta.

The recent appointment of Sewing - who has a background in retail banking, auditing and risk - had suggested a shift away from the investment bank. He promised further changes in coming months, saying that he and other Deutsche Bank executives understand why investors have lost patience.


Sewing said the bank's management board had chose to act "decisively" in light of the division's performance. Mr. Cryan hasn't commented on the criticism.

"The discipline here is in defining ourselves in relation to our European core, ensuring the discipline is there to be active in areas that are product strengths of ours", the CFO said, stressing the need to focus on the bank's connection with its home market of Germany and Europe.

The bank plans to reduce its activities in US rates sales and trading and corporate finance. The bank will also continue to shed real estate.


The future of the investment bank had been a key factor in the tumultuous management shakeup that saw Christian Sewing take over as chief executive officer this month. That is being reduced with three departures as previously announced, while Deutsche Bank said co-head structures in business divisions are discontinued.

Under Mr. Cryan, Deutsche Bank settled big legal cases that had hung over the lender, raised $8.5 billion in capital and set about cutting billions in expenses. Revenues for all businesses were lower year-on-year. The hedge fund held 975,000 shares of the major banks company at the end of 2017Q4, valued at $18.55M, down from 1.25 million at the end of the previous reported quarter.

In a letter to employees that was published on the bank's website alongside the announcement, Sewing hinted at upcoming changes to the company, including pulling back from "not sufficiently profitable" areas in its investment banking business.


Deutsche said on Thursday: "The bank will scale back activities in USA rates sales and trading, shrinking the balance sheet, leverage exposure and repo financing while remaining committed to its European business, which given its scale and relevance to our client base generates more attractive returns". Its German home market trails the U.S. and U.K.in retail- and investment-banking profitability, and compared to its big Swiss rivals, Deutsche Bank lacks scale in private banking and wealth management.

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